First of all, Ken Kennedy needs to understand how to choose the expert for the audit of Solar TubeGen. In order to do so, as requirements of choosing the expert are covered by (ASA 620), he must consider the following steps, which are essential for choosing the right expertise. Before he is choosing the right expertise Ken needs to collect the document and evidence, so that he may consider that whether the company requires the expertise necessary to test and evaluate the consistency of reported information. After he got all the documents and evidences, Ken firstly considers whether an expert is needed for the company. If he considered that an expert is required, then again Ken considers the scope of work to be done by the expert. When he chooses an expert to complete the work, he assesses the ability of the expert to do and their objectivity. Commonly, there are four steps to evaluate for using the work of expert. They are:.
1. Assessing the need to use an expert.
As the team don't have an experience in renewable energy sector, Ken has to consider whether the firm needs expertise in a area other than accounting or auditing is essential to obtain enough recommended audit evidences. And if Ken discover out the greater risk of material misstatement and less corroborating evidence available the more likely he needs to turn to an expert for their recommend because as the team does not have understanding about the renewably energy sector. .
2. Determining the scope of the work of Nature, Timing and Extent of Audit Procedures.
To be determined the nature, timing and extent of audit procedures, Ken will contemplate issues including the expert's work relates and the risks of material misstatement in the matter to which that expert's work applies. The relevance of the expert's work in the framework of the audit within the nature and timing of the audit is required, and whether the expert is matter to the auditors firm's standard control rules and regulations.
